Memphis City Council members put the finishing touches on the city’s fiscal year 2027 budget Tuesday, June 23, by adding a 2% raise and a one-time $2,000 bonus for city sanitation workers.
Along with a $900 million operating budget, council members approved over $100 million for capital improvements. Both budgets will be funded by an unchanged property tax rate of $3.39. The fiscal year begins July 1.
Council members approved the budget 11-1. Chase Carlisle cast the only “no” vote.
Representatives of the American Federation of State, County and Municipal Employees at the meeting had expected a 5% pay raise. But council member JB Smiley’s proposal supporting the raise for the union was pared down, following an objection by J. Ford Canale.
During recent discussions with Mayor Paul Young’s administration, it was noted that some employees are already “overcompensated.” For his part, Canale, who serves as vice chair of the Personnel, Governmental Affairs and Annexations Committee, said council discussions about the remaining 3% could be revisited later in the year – after identifying the workers referenced by the administration – to avoid confusion or missteps.
Following the vote, many city workers who attended the meeting left disappointed. Union leaders have argued the solid waste budget could easily absorb a 5% increase. The hourly rate for most sanitation workers ranges from $17 to $25.
The council also reallocated $703,675 from Accelerate Memphis dollars remaining in the fiscal year 2026 budget to pay for new vehicles for solid waste and anti-blight efforts.
Personnel costs account for over 70% of the total budget, including more than $400 million to cover payroll for the Memphis Police and Memphis Fire departments. Memphis Police will receive $221 million of the total budget. And $180 million is budgeted for Memphis Fire.
The fiscal year 2027 budget also invests in the city’s infrastructure, including $36.5 million for projects in South Memphis. A new police station at the site of the former Southwest Twin Drive-In and a new library in Parkway Village are planned.
City leaders earmarked $20 million for paving projects and pothole repairs. The money also will go toward expanding Memphis’ ability to lower asphalt production costs. Another $18 million will be spent to tackle blight and illegal dumping.
Memphis Parks, which oversees more than 150 parks, along with trails, playgrounds, recreation facilities and programs, and owns community attractions, including several museums, the Memphis Botanic Garden, Memphis Zoo and Simmons Bank Liberty Stadium, netted over $40 million in funding for the fiscal year.
Upgrades for the parks division include $4 million for a new clubhouse at The Links at Audubon golf course, along with $3.5 million for American Way Park and another $3.1 million for Jesse Turner Park to cover site improvements. The Overton Park Shell and city greenlines also are slated for enhancements.
During the meeting, council members also approved referendum ordinances on their first votes. The first proposed legislative measure would alter the appeals procedure for the city’s civil service system for nonpartisan government employees. Another would require lobbyists to register with the city and disclose their employers. Voters also must decide whether to change library workers’ labor status from appointed employees to civil service workers.
If approved on a third and final reading, three separate referenda will be placed on the upcoming Nov. 3 ballot.
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